Debate rages over SRD2 delay

Author: IFLR Correspondent | Published: 14 May 2020

By Alice Tchernookova

Market participants recently requested a delay to the second phase of the shareholder rights directive two (SRD2), due to be implemented across the EU this September. The extension has been requested on the grounds that Covid-19 had severely disrupted planning, but views on the issue are split.

The implementation of SRD2 is scheduled in two phases. June 2019 marked the deadline by which all member states had to transpose the majority of the regulation’s requirements into their national law. By September this year, each is due to transpose all outstanding measures, which include the identification of shareholders, the transmission of information and the facilitation of the exercise of shareholder rights within companies and across borders.

"This is a complicated legislation that can’t just be adopted automatically across jurisdictions – it has to be fine-tuned in each country," said Juan Prieto, founder of Spain-based proxy advisory firm Corporance Asesores...